Ireland Allows Hedge Funds To Lend Across Borders

The Central Bank of Ireland is implementing new rules that would allow hedge funds to lend money to companies across international boundaries. The new rules are part of a Europe-wide effort to increase the supply of credit in a continent still hurting from a string of banking crises across the last five years. The rules are expected to be put in place by the end of the year, after a mandatory consultation process has been completed.

Direct lending has been legal in the hedge fund world in the United States for a number of years, but has...